Many people outside the United States can legally own U.S. stocks, funds, property or businesses. What decides your options is where you live and pay tax, which institutions will accept you, and what your home country allows—not your passport alone. The guides below are written for nonresident aliens: people who are neither U.S. citizens nor U.S. tax residents.
Before comparing apps or properties, settle four questions in this order:
- Your tax residence and U.S. status. U.S. citizens and green-card holders living abroad follow different rules from nonresidents. See IRS Publication 519.
- A lawful route for your money. Some countries restrict overseas investing or currency purchases. A broker accepting your application does not make a transfer permitted at home.
- The total cost. Currency conversion, transfer fees, custody and taxes often matter more than the trading commission.
- What happens at tax time and at death. U.S. dividends are generally subject to 30% withholding unless a treaty lowers it, and U.S. shares or property can create U.S. estate-tax exposure above a $60,000 filing threshold.
Comparing ways to invest in the U.S. from abroad
The table summarizes general federal rules for individual nonresidents. Treaty rates, local taxes and product availability vary by country, so treat it as a map of questions—not an answer for your situation.
| Option | What you own | How you usually access it | Main U.S. tax points | Key risks and checks |
|---|---|---|---|---|
| U.S. stocks | Shares of U.S. companies | International broker or a local broker offering U.S. markets | Dividends: 30% withholding unless a treaty applies; ordinary stock gains generally not U.S.-taxed for nonresidents present under 183 days | Broker eligibility, FX costs, single-company risk, estate-tax situs |
| U.S.-domiciled ETFs | Shares of a U.S. fund | Same as stocks, where retail rules allow | Same dividend withholding as stocks; fund shares can be U.S.-situs for estate tax | Some regions (e.g. EU retail) restrict U.S. ETFs without required documents |
| Non-U.S. funds tracking U.S. indexes | Units in a fund domiciled elsewhere (e.g. Ireland, Hong Kong, a QDII fund) | Local or international broker; fund platforms | Withholding happens inside the fund; your home-country tax depends on the fund | Domicile, fees, tracking difference, local tax treatment |
| U.S. REITs | Shares of real-estate companies | Broker account | Distributions can be classified differently from ordinary dividends | Interest-rate and sector risk; check distribution types |
| Direct U.S. property | A house, condo or building (personally or through an entity) | Remote or in-person purchase, cash or foreign-national financing | Rent: 30% of gross unless you elect net-basis taxation; FIRPTA withholding when you sell | State ownership restrictions, management, title, financing, estate exposure |
| A U.S. business | Equity in an operating company | Purchase or formation, often with advisers | Business income is generally effectively connected and taxed on a net basis; filing duties | Immigration rules for working in it, due diligence, entity and treaty questions |
Frequently Asked Questions
Can a non-U.S. resident open a U.S. brokerage account?
Often yes. Several brokers accept applicants from many countries, but approval depends on your actual residence, identity checks and the products you want. Your home country may also restrict overseas investing or currency transfers, which you must follow.
Do foreigners pay U.S. tax on U.S. stock gains?
Ordinary stock-sale gains are generally not subject to U.S. federal income tax for nonresident aliens who are present in the U.S. fewer than 183 days in the year and whose gains are not connected with a U.S. business. Real estate interests and other exceptions apply, and your home country may tax the gain.
What is the dividend withholding rate for foreign investors?
The general U.S. rate is 30% on ordinary dividends paid to nonresident aliens. A tax treaty can lower it—for example to 10% or 15% for eligible residents of some countries—if you give your broker a valid Form W-8BEN. There is no single rate for every investor.
Can I buy U.S. real estate without living in the U.S.?
Many foreign buyers can, but some states restrict purchases by people or entities connected to certain countries, and federal rules can apply near military sites. Rental income and future sales have specific tax and withholding rules, so get legal and tax advice before signing.
Does U.S. estate tax apply to foreign investors?
It can. For people who are neither U.S. citizens nor U.S.-domiciled, U.S.-situated assets such as U.S. company shares and U.S. property can require an estate tax return when they exceed $60,000. Treaties can change the result, so plan before your holdings grow.
Is this site giving me investment or tax advice?
No. These are free educational guides with sources. Rules change and depend on your circumstances, so confirm details with the provider and a qualified cross-border tax professional before acting.